As one of the first and most popular e-transfer networks in Canada, Interac has been making payments easier for Canadians for over two decades. Interac was initially founded in 1984 when all the major financial institutions in Canada came together to create a shared cash dispensing method.
It was the first Canadian electronic payment method and has been improving its services throughout the years to include things like e-transfers, debit transactions, and online payments. They have shaped the Canadian financial landscape, making money transfers easier and seamless.
Pros of Using Interac
- Widespread Acceptance
Interac has become quite popular and one of the most widely used and accepted payment methods in Canadian stores both online and offline. Interac can be used for peer-to-peer transactions, direct payments from bank accounts, and for paying bills like rent.
With such high acceptance and multiple uses, Interac eliminates the need for multiple payment methods. It makes transactions easy for customers and offers the convenience of using one payment method for most of their transactions.
- Security
As a major financial institution, Interac has employed strong security measures to ensure the safety of customer data and transactions. They use the latest bank-grade encryption technology and secure authentication measures to enhance the security of all transactions.
Additionally, Interac does real-time transaction monitoring to help detect any suspicious activity in transactions and stop fraudsters in their tracks. Interac also has other security features like auto-deposit, cumulative limits, and a proprietary fraud detection system to help keep customers’ data and money safe.
- Ease of Use
Sending and receiving money through Interac is a piece of cake. It has minimal requirements, making it easy for anyone to send or receive money in Canada. All you need is a Canadian deposit bank account, a mobile number, or an email, all of which are easy to acquire.
Customers do not need to create new accounts, IDs, or passwords if they are already using online banking, making the process quite seamless. The process is also instant, which allows for fast and convenient transactions all over Canada.
- Low Fees
Interac has dominated the e-transfer market through exceptional features and reasonable fees. Compared to other payment methods, their fees are much lower, attracting business from customers in different industries and business levels. It costs about $1-$1.50 to send an Interac e-Transfer to most banks and credit unions in Canada, and nothing to receive or deposit one.
The low fees are good for point-of-sale transactions as they make money transfers affordable and, hence, convenient. Small business owners are particularly pleased with it as they can spare money to develop other critical aspects of their business.
- Integration with Online Gambling
With its widespread popularity and use, Interac has also infiltrated the gambling industry, with most of the popular online casinos in Canada, like Sloto Cash Casino, using it for deposits and withdrawals. Most players prefer to use Interac as their deposit method as it is fast and secure.
The low transaction fees also make it favorable for most players as they can make as many deposits as possible without denting their bankroll. The fact that it is accepted in most of the best online casinos also makes it a favorite among Canadian players.
Cons of Using Interac
- Geographical Limitations
As much as Interac is an efficient and widely accepted payment method in Canada, it is not the case for the rest of the world. That is mainly because it only works with Canadian bank accounts.
Canadians might be able to use the platform while traveling abroad in places like the USA, but not people without Canadian bank accounts. That geographical limitation makes it difficult to do business with people from other countries.
- Limited Online Acceptance
Interac is gaining traction in international online e-commerce platforms, but for now the acceptance is still limited. This may be due to its geographical limitations. Most international online trading sites have yet to list Interac as one of their payment methods.
That forces Canadians using these sites to settle for other widely recognized e-transfer payment methods, which is not convenient for them. Hopefully, in the future, Interac will be one of the most commonly used payment methods internationally.
- Transaction Limits
The banks have initiated transaction limits as a way of keeping Interac transactions and customers safe from fraud. While it is a good feature for security, it is inconvenient for people or businesses that want to make large transfers.
- Bank Dependent Experience
Because Interac relies on transactions with various Canadian banks, the user experience can be inconsistent. That is because different banks have different policies, processing times, and fees.
The experience a customer gets depends on their bank of choice, which could sometimes be unpleasant. The merchant’s dependency on banks denies them the opportunity to shape their user’s experience from the beginning to the end.
Conclusion
Interac is a trusted and widely used payment method for everyday transactions, bill payments, and even gambling. Its ease of use, high-end security measures, and considerable fees are some of the features that make it so popular in Canada. It is also conveniently available and accepted in most stores in Canada, which is a lifesaver for Canadians.
Even so, its geographical limitations are a bummer for users with international needs. These limitations also affect its global acceptance, making it hard for Canadians to transact seamlessly on international e-commerce sites. However, Interac is growing at a very fast rate on a global scale, and very soon, that might be possible for Canadians.
